Market Update - 17 Aug 2023

The EUR/USD pair remains under selling pressure and trades on a negative note for the fifth consecutive day during the Asian session on Thursday. The major pair currently trades around 1.0863, losing 0.14% on the day. (FXStreet)

USD/JPY refreshes the Year-To-Date (YTD) high to 146.55 but lacks follow-through amid fears of the Japanese policymakers’ market intervention to defend the Yen. That said, broad risk aversion and hawkish Fed concerns underpin the major currency pair’s run-up early Thursday. (FXStreet)

The GBP/USD pair edges lower during the Asian session on Thursday and extends the overnight pullback from the 1.2765 area, or a multi-day peak. The downtick is exclusively sponsored by the underlying bullish sentiment surrounding the US Dollar (USD), though spot prices manage to hold above the 1.2700 mark in the wake of rising bets for further interest rate hikes by the Bank of England (BoE). (FXStreet)

The USD/CHF pair trades flat with mild gains above the 0.8800 area heading into the early European session on Thursday. The pair has been trading within a consolidation phase since July 27. (FXStreet)

The GBP/JPY cross ticks lower after touching its highest level since November 2015, around the 186.45 area, this Thursday and trades with a mild negative bias during the early part of the European session. The supportive fundamental backdrop, however, assists spot prices to hold above the 186.00 mark and supports prospects for an extension of the recent breakout momentum through the 184.00 round figure, or the previous YTD peak. (FXStreet)

The USD/CAD pair retreats a few pips from the vicinity of mid-1.3500s, or the highest level since June touched this Thursday and drops to a fresh daily low during the early part of the European session. Spot prices, however, manage to hold above the 1.3500 psychological mark and seem poised to prolong the recent strong upward trajectory witnessed since the beginning of this month. (FXStreet)

AUD/JPY slumps 50 pips on the downbeat Australian employment report for July during early Thursday. Adding strength to the bearish bias are the fears of the Japanese intervention to defend the Yen. The same joins sour sentiment to exert downside pressure on the risk-barometer pair, down 0.67% intraday near 93.35 by the press time. (FXStreet)

EUR/GBP continues to experience losses, trading near the monthly low at 0.8540 during the Asian session on Thursday. The EUR/GBP downward trajectory is further driven by better-than-expected inflation figures from the United Kingdom (UK) on Wednesday. (FXStreet)

EUR/JPY clings to mild losses around the intraday low of 159.03 as it prints the first daily fall in four heading into Thursday’s European session. In doing so, the cross-currency pair fails to justify the firmer Treasury bond yields amid fears of the Japanese intervention to defend the Yen, as well as chatters that Germany can continue weighing on the Eurozone’s economic optimism. (FXStreet)

AUD/USD bears take a breather after refreshing the yearly low as oversold RSI joins the key Fibonacci ratio to mark an unimpressive effort to prod downside. That said, the Aussie pair dropped to 0.6364 before recently poking 0.6390 heading into Thursday’s European session. (FXStreet)

The USD/INR pair edges lower during the Asian session on Thursday and moves further away from the record high touched earlier this week. Spot prices slide back to the 83.00 strong horizontal resistance breakpoint, though seems poised to prolong the recent upward trajectory witnessed over the past three weeks or so. (FXStreet)

NZD/USD bears keep the reins for the eighth consecutive day as they refresh the yearly low to 0.5902 amid early Thursday. In doing so, the Kiwi pair justifies the previous week’s downside break of the 0.5985 support comprising May’s low while poking the 61.8% Fibonacci retracement of October 2022 to February 2023 upside, near 0.5900 by the press time, also known as the golden Fibonacci ratio. (FXStreet)

USD/CNH remains on the front foot as bulls flirt with 7.3400 after refreshing the yearly high early Thursday. In doing so, the offshore Chinese Yuan (CNY) not only justifies the US Dollar’s strength but also the downbeat concerns about China and the People’s Bank of China’s (PBoC) struggle to defend the domestic currency. (FXStreet)

The AUD/NZD cross remains under some selling pressure for the third successive day and retreats further from a two-and-half-week high, around the 1.0875-1.0880 region touched on Tuesday. The downfall picks up pace during the Asian session on Thursday and drags spot prices to a one-week low, around the 1.0780 area in the last hour. (FXStreet)

USD/MXN gains momentum above the 17.00 area amid the firmer US dollar (USD) broadly. The FOMC Minutes suggest the possibility of a further tightening cycle from the Federal Reserve (Fed), and it boosts the Greenback to the highest level since June, above 103.50. The pair currently trades near 17.1730, up 0.22% on the day. (FXStreet)

WTI prices extended the weekly leg lower and broke below the key $80.00 mark per barrel on Wednesday. The marked downtick was amidst shrinking open interest, however, bolstering the idea that a sustained decline seems out of favour for the time being. On the upside, the 2023 peak near $85.00 emerges as quite a decent resistance for bulls so far. (FXStreet)

Prices of natural gas extended the marked weekly pullback on Wednesday amidst shrinking open interest and volume, which is indicative that extra losses seem unlikely and opening the door to a potential short-term rebound instead. On the upside, the commodity remains capped by the key $3.00 region per MMBtu. (FXStreet)

Gold price recovered its losses registered on Wednesday, currently trying to hold the ground near the $1,900 per troy ounce during the early trading hours in the European session on Thursday. The recent release of strong macroeconomic data from the United States (US) on Wednesday exerted downward pressure on the price of gold. Investors seek additional momentum from upcoming US economic indicators in order to gain a clearer perspective on the potential further tightening of monetary policy by the US Federal Reserve (Fed). (FXStreet)

Silver attracts fresh buying near the $22.35 region on Thursday and sticks to its modest intraday gains through the early part of the European session. The white metal currently trades around the $22.60-$22.65 area, up just over 1.0% for the day, though remains well within the striking distance of a nearly two-month low touched on Tuesday. (FXStreet)

Source: FXStreet

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